The State of the Trend

By: George Krum | Sat, Jan 26, 2013
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The big story of the week was AAPL's 80 point drop which sent the stock towards its next support level around $400.

What was bad for AAPL, and related stocks (the NDX got pushed back in its box) had, however, unintended beneficial consequences for the other indices, by preventing market internals from getting overbought. This helped sustain the rally in the DJIA, and resulted in the SPX reaching our first target zone:

From a broader point of view, the SPX's performance continues to be consistent with previous reactions to similar monetary policies in the recent past. Although small hickups along the way are to be expected, until the trend changes, the '07 highs become the next target.

Being contrarian for contrarian's sake can have very unpleasant consequences. Keeping an eye on market breadth can help avoid many disappointments.



George Krum

Author: George Krum

George Krum

George Krum is the author of the "CIT Dates" blog, and the following apps:

OddsTrader - combines the power of Hurst Channels with proper risk and position size management. For a web version see OT Signals below.

Gann 9 - the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world, and to build long-term forecasts and models.

OT Pairs - pairs trading, one of the most successful hedge fund trading strategies, is now available on your smart phone.

OT Pivots - combines the power of pivot lines with cycles to provide you with concise technical analysis and powerful trading signals.

OT Signals - a web app accessible from any browser, tablet or pc. It gives buy/sell/hold ratings for any instrument from around the world, and defines the trend and support/resistance levels.

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